SIR EX

Project Charter:

Joe’s Online Shoes

Construct Building for Inventory Storage and Retrieval

Christina Price

January 17, 2016

Introduction:

A report completed by the consulting firm of Webfast, Inc. has recommended that Joe’s Online Shoes (JOS) construct a larger facility for inventory storage. The current space, which is leased, is no longer large enough to meet the company’s needs. The consultant’s report found that a new facility will decrease shipping times and labor costs. In addition, the CFO of JOS has advised that the company purchase land and build a new facility now based on current low interest rates and construction costs.

The purpose of this project is to construct a building for inventory storage and efficient retrieval of stock. The project includes furnishing the building with storage racks. The project does not include equipment needed to access storage racks.

Objectives:

1. Provide enough space to store 3,000 pairs of shoes

2. Ensure that the building protects stock from damage

3. Aisles five feet wide or larger for efficient retrieval

4. Complete the project in under 9 months

Requirements:

1. Construction Loan Approval

2. Purchase of a building site between 1 and 2 acres with access to high speed internet and highways

3. Permit Approval

Assumptions:

1. Availability of land

2. Approval of a contractor through RFP process

3. Employees would transfer to new site

Constraints:

1. Weather

2. Building Materials Availability

Project Description:

The project will include a design and build request for proposals from qualified general contractors. The final design of the building will be determined by that selection process. The building is expected to be between 3000 square feet and 4000 square feet. It is expected to have at least two loading docks for deliveries and shipping. There will be one multipurpose air-conditioned office area. Contractors proposing LEED or Green Globes certification will be given preference.

Risks:

1. General Contractor failure to meet timeline and budget

2. JOS will outgrow the building

3. Defects in the property or building

Schedule:

Budget:

The budget for this project is estimated to be $ 750,000 to $ 900,000 depending on final design.

Stakeholders:

Joe Smith, President of JOS

Joe Thomas, CFO of JOS

General Contractor, to be selected

Employees that will work at site

City / County Building Department that has jurisdiction

Project Approvals:

This charter officially approves the project on behalf of the governing officers of JOS. The project is to begin within 15 days of closing on the required property.

Resources Roles and Responsibilities:

Project Manager: Christina Price, Project Manager at JOS

Sponsor: Joe Thomas, CFO at JOS

Project Administrator: James Smith, Administrator at JOS